FIRMS in Coventry and Warwickshire could be in line for a share of #30-#40 million cash aid from a new regional development scheme.

Advantage West Midlands, the region?s economic development agency, is putting the finishing touches to the plan to provide venture capital for small and medium sized companies.

The scheme will be run in conjunction with the Small Business Service and make sums of up to #500,000 available for initial investment funding.

Mick Laverty, AWM?s director of finance and strategy, said: ?The Advantage Growth Fund will be one of the regional venture capital funds the government is keen to see launched.

?With the understanding of operating such initiatives that we have gained from the Advantage Technology Fund, I would hope that this fund will be able to deliver similar benefits of the regional economy scheme just as successfully.?

The Advantage Technology Fund has made more than #6.5 million available to 28 high-tech firms around the West Midlands.

Mr Laverty said that the success of the technology fund had created a template for similar programmes.

?It has confirmed that there is no shortage of ideas and that all small and emerging companies with those ideas need is financial support.?

The technology fund ran for a year. Firms that received up to #250,000 investment were able to use it to find extra cash, develop new products and create new jobs.

The recipients included companies in the ceramic, electronics, security and telecoms sectors.

?Raising finance can be difficult for start-up small and medium-sized enterprises.

Traditional sources of capital may be reluctant to provide financial support, especially as a sole provider, where a solid track record of achievement cannot be demonstrated,? said Mr Laverty.

AWM is also planning to launch the Advantage Community Development Loan Fund to help not-for-profit social enterprises operating in disadvantaged areas.